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<br />Promissory Note
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<br />Date /1AP-C.J--1 ; , 2001 ' Date of Completion -u. ce... b<-r /.. 2 tl tl /
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<br />1. FOR VALUE RECEIVED, the Julesburg,lrrigation District ("BORROWER") promises to pay the State of Colorado
<br />Water Conservation Board ("CWCB"), the principal sum of One Hundred Thousand Dollars ($100,000) plus
<br />interest at the rate of 3,5% per annum for a term of thirty (30) years, pursuant to Loan Contract No, C150060
<br />dated March 1, 2001 ("LOAN CONTRACT"),
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<br />2. Principai and interest shali be payable in equal instaliments of $5437.13, with the first payment due and payable
<br />one year from the date that the CWCB determines that the project is substantialiy complete, and annually
<br />thereafter until all principal, interest, and ali late charges, if any, have been paid in full. AIi principal, interest, and
<br />late charges, ~ any, then remaining unpaid shail be due and payable 30 years thereafter,
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<br />3, Payments shali be made payable to the Colorado Water Conservation Board and mailed to 1313 Sherman
<br />Street, Room 721, Denver, Colorado 80203. '
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<br />4, If the eWCB does not receive the annual payment within 15 calendar days of the due date, the CWCS may
<br />impose a late charge in the amount of 5% of the annual payment.
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<br />5, This Note may be prepaid in whole or in part at any time without premium or penalty. Any partial prepayment
<br />shali not postpone the due date of any subsequent payments or change the amount of such payments,
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<br />6, AIi payments received shali be applied first to iate charges, if any, next to accrued interest and then to reduce
<br />the principal amount.
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<br />7, This Note is issued pursuant to the LOAN CONTRACT between the CWCB and the BORROWER. The LOAN
<br />CONTRACT creates security interests in favor of the CWCB to, secure the prompt payment of ali amounts that
<br />may become due hereunder, The security interests, evidenced by a Security Agreement and a Deed of Trust
<br />dated March 1, 2001, in the amount of $100,000, cover certain revenues and real property of the BORROWER,
<br />The LOAN CONTRACT, Security Agreement and Deed of Trust grant additional rights to the CWCB, including the
<br />right to accelerate the maturity of this Note in certain events. " '
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<br />8, If any annual payment Is not paid when due or any default under the LOAN CONTRACT or the Security Agreement
<br />or Deed of Trust securing this Note occurs, the CWCB may declare the entire outstanding principal balance of
<br />the Note, ali accrued interest" and any outstanding late charges immediately due and payable, and the
<br />indebtedness shall bear interest at the rate of 7% per annum from the date of defauit. The CWCB shilll give the
<br />BORROWER written notice of any alieged default and an opportunity to cure within thirty (30) days of receipt of
<br />such notice before the BORROWER shall be considered in default for purposes of this Promissory Note,
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<br />9, The BORROWER, any guarantor, and any other person who is now or may hereafter become primarily or
<br />secondarily liable for the payment of this Note or any portion thereof hereby agree that if this Note or interest
<br />thereon is not paid when due or if suit is brought, then it shali pay ali reasonable costs of coliectlon, including
<br />reasonable attorney fees, In the event of any bankruptcy or similar proceedings, costs of collection shall include
<br />all costs and attorney fees incurred in connection with such proceedings. including the fees of counsei for
<br />attendance at meetings of creditors' committees or other committees,
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<br />10, This Note shali be governed in all respects by the laws of the State of Colorado.
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<br />( orge Dracon, President
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<br />(SEAL)
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<br />Appendix 2 ~oLoan Contract No. C1 S0060
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